News from Seattle's Office of Economic Development

Over the past year the mayor’s office, Seattle Fire Department, Department of Planning and Development and the Office of Economic Development have been working with leaders in the life sciences sector to determine how the City can better support the needs of this rapidly growing industry. In our conversations with them, we heard that changes to the City’s Fire and Building Code, as they relate to hazardous materials, would help the industry to grow and further develop in Seattle.

The Mayor is proud to report that we have worked through the complexities of the code, and thanks to our work together we’ve been successful in adopting changes that will become effective in 2013.

The changes to the code will expand opportunities for lab locations, while ensuring life safety and property protections from the hazards of fire and dangerous conditions. The changes were proposed by the mayor and adopted by the City Council, and are consistent with nationally recognized good practices and sound fire protection principles. The 2012 code also addresses health, life and fire safety requirements, while allowing flexibility for operations. The new code will require an increase in the sprinkler density and an increase in the fire resistance of lab walls while providing the labs with opportunities to store chemicals at higher floors than the current code allows.

The Building and Fire Code changes reflect more than a year of discussion and research between the City of Seattle and life sciences industry stakeholders. These changes will better support the needs of life sciences labs while protecting safety protections for workers and the public. Special thanks to the Fire Marshal, Assistant Chief John Nelsen, and Department of Planning Development Director Diane Sugimura, and to the industry leaders who worked with us to come up with this new approach.

These changes will continue to support the growth of the life sciences and global health sectors in Seattle, which are a vital part of our city’s economic base and present the opportunity to create more good-paying jobs focused on innovation.

On Saturday Mayor Mike McGinn and Chinatown-International District Business Improvement Area (CIDBIA) board member Tuck Eng unveiled the first of several bilingual street name signs at the 2013 Dragon Fest, the Chinatown-International District’s summer festival. The first sign, located at the corner of Sixth Avenue South and South King Street, is being installed as part of a neighborhood wide program in Seattle’s historic Chinatown and Japantown. Over the summer, translated street name signs in English and Chinese, or English and Japanese will be added to over thirty intersections through a partnership between the CIDBIA and the City of Seattle.

“These signs will help us celebrate the ongoing diversity of the Chinatown-International District, as well as help people navigate the neighborhood,” said Mayor Mike McGinn.

The CIDBIA worked with over 100 neighborhood stakeholders, fifteen family associations, local ethnic media, the University of Washington, and translators from the Seattle Municipal Court to translate the existing street names into traditional Chinese and Japanese. Neighborhood stakeholders identified translated street name signs as a way to recognize the historic significance and culture of the neighborhood. With the installation of the bilingual street name signs, the project provides a historic reminder of the populations that built the community. It also aids in preserving the CID’s identity and supports wayfinding.

“Not only is the [street sign installation] a wonderful reflection of the neighborhood’s rich cultural history, but a reflection of the international hub that Seattle has become.” says Executive Director of the CIDBIA, Don Blakeney.

Mayor Mike McGinn updated the public on the progress of the Seattle Jobs Plan, launched three years ago, and described future efforts to support job creation in Seattle. New or expanded initiatives in 2013 include Startup Seattle, expansion of the Pathways to Careers and Career Bridge job training programs, new efforts to streamline permitting for restaurants and cafés, and new infrastructure projects including Gigabit Squared broadband.

Seattle’s April 2013 unemployment rate was 4.7%, the lowest unemployment rate for the city since 2008. It is lower than the state unemployment rate of 7.0% and the national rate of 7.5%. Between February 2010 and April 2013 the Seattle metropolitan area’s job growth rate is 7.7%, outpacing the state’s growth rate of 5.8% and the U.S.’s growth rate of 4.9%.

“This is great news for Seattle as we put the worst days of the recession behind us,” said McGinn. “But we cannot coast on our success. We can look across America to see examples of cities that did not continue innovating new ideas and new jobs and fell into decline. The Seattle Jobs Plan will help Seattle move forward by providing job training to those who still need a good job, supporting new innovation, and investing in our great neighborhood businesses.”

Since 2010, the City of Seattle has made significant investments in its youth and young adults, its innovative entrepreneurs, its economic strengths and infrastructure. Some of these investments and outcomes include:

City has committed $2.9 billion in capital improvements, which created or retained 9,531 jobs

Distributed $84.9 million in financing to 118 businesses, resulting in 1,476 jobs created or retained

Provided training and employment services to 9,740 individuals through the Seattle Jobs Initiative and other workforce development partners, resulting in 1,747 job placements

60,018 businesses were licensed in Seattle at the end of 2012, which was 3,000 more businesses licensed than in 2011

Value of construction permits increased almost 63%, from $1.6 billion in 2010 to an estimated $2.6 billion in 2013

Issued permits for over 9,000 net housing units in 2012, the highest yearly total since the City began tracking permits electronically since 1984

Invested over $12 million to support business district initiatives and community projects in our neighborhoods since 2010

“The workforce of today — and the workforce of our future — must be diverse, highly skilled, nimble, and collaborative,” said Jill Wakefield, Chancellor, Seattle Community Colleges. “Programs like Pathways to Careers, launched with a sizable investment from the City of Seattle, allows Seattle Community Colleges to broaden community partnerships and offer attainable, innovative education and training that provide all citizens with the skills to succeed in the world of work.”

Looking ahead, this Jobs Plan update focuses on items to help Seattle build shared prosperity by maintaining an innovative economy, educating our children, and building for the future. These priorities include:

Launching Startup Seattle, an initiative to support the growth of the Seattle technology startup community and establish Seattle as an internationally recognized home for emerging technology companies

Improve the experience of starting and operating restaurants and cafes by simplifying regulation and permitting processes with better coordination among City, County, and State governments

Creating great urban neighborhoods, including an annual investment of $1.5 million directly in our neighborhood business districts through the Only in Seattle initiative

Improve construction permitting across City departments to save time and improve transparency of decision-making to deal with increased demand for permits

Execute three creative partnerships with State of Washington and King County as part of the Industrial Development District program. The projects will support industrial clean-up efforts and support expanded cargo capacity at the Port of Seattle

Investing billions in major capital projects that will renew our infrastructure, enhance our quality of life and create thousands of good jobs, including the Elliott Bay Seawall project, Mercer Corridor West, First Hill Streetcar and innovative Green Stormwater infrastructure projects

Partner with Gigabit Squared to begin rollout of high speed broadband to Seattle neighborhoods

Expand the Pathways to Careers partnership with education, industry, labor, non-profits and philanthropy to transform professional education and training to low-income adults

Expand the Career Bridge program to help up to 200 more low-income adults who have additional barriers, including Immigrant and Refugees with limited-English and low levels of education, gain access to the Pathways to Careers initiative and obtain the skills they need to get better jobs. $800,000 has been budgeted for this program expansion.

Mayor Mike McGinn recognized Belltown-based The Yellow Leaf Cupcake Company for their growth, creativity, and commitment to their local community on the 4th anniversary of the founding of their business.

“Small business owners are the backbone of our local economy, creating jobs and supporting our neighborhoods,” said Mayor Mike McGinn. “It’s inspiring to see the commitment that Yellow Leaf Cupcake owners Tony and Michael have to their Belltown neighborhood and local community, and the passion they bring to work every day.”

A part of the Seattle Jobs Plan, the In Good Company program is an ongoing showcase of businesses that spotlights one locally-owned business every month for being unconventional, transformative, and exemplary. There are a lot of incredible businesses in Seattle, and if your business is recognized here, you know that you’re in good company.

The Yellow Leaf Cupcake Company opened in May 2009 with just two employees, who remain the owners of the company today. Over the past four years, they have seen double digit increases each year, finding tremendous success during the strain of the economic downturn.

They specifically located their business in the Belltown neighborhood for the opportunity and potential they saw in the neighborhood, and for the impact they believed they could have on the community.

“Tony and I live and work in Belltown. We feel that giving back to our immediate community is the best way to help our community grow,” said Michael Hein, co-owner and co-founder of The Yellow Leaf Cupcake Co. “We like to think that we have been part of making our community better, and we want to see this neighborhood become the best neighborhood in Seattle.”

Their business mentality is to promote one’s own business and product, while also promoting the businesses around them, as a powerful way to influence the success of both. “We are 100% committed to keeping our ingredients local, fresh, and of the highest quality, knowing that it shows in the customer satisfaction and in everything we do,” said Tony Portugal, co-owner and co-founder of The Yellow Leaf Cupcake Co. ”We feel that we are leaders in what we do, and have introduced our guests to a sophisticated cupcake experience.”

The Yellow Leaf Cupcake Company has created well over 200 different flavors of cupcakes, including unique flavors such as pancakes n’ bacon, tomato soup, and croquembouche. They are one of the few cupcake shops in Seattle that does not mass produce its product, making everything 100% from scratch, in small batches daily.

As a ‘destination business,’ the company has attracted customers to Belltown, from local shoppers to visiting international tourists. In addition to bringing shoppers to the neighborhood, they also have a firm commitment to give back to others in their local community.“Yellow Leaf Cupcake Co. is a great example of the new entrepreneur who seeks out the right marketplace, then moves there to start their business,” said Maud Daudon, president & CEO of the Seattle Metropolitan Chamber of Commerce. “Michael and Tony wisely chose Seattle’s urban core as the place where they and their model for locally sourced, small batch cupcakes would thrive. We hope their story will be an inspiration to others who are turning their passion into a business.”

“Paul’s impressive filmmaking and commercial film career, his championship of Seattle as a thriving commercial film production city, and his commitment to the local filmmaking industry make him an obvious honoree this year,” said Mayor McGinn. “I congratulate him on his work and thank him for being a leader in our local film industry.”

The Mayor’s Award for Outstanding Achievement in Film recognizes an individual or entity for exceptional work that has significantly contributed to the growth, advancement and reputation of Seattle as a filmmaking city. The award presented is artwork created by artist Dale Chihuly.

After spending 15 years in the ad agency business, Paul Matthaeus founded Digital Kitchen (DK) in 1995 with the mission to apply entertainment principles to brands- and in turn- branding principles to entertainment.

Not only has DK grown into a creative force that traverses entertainment and advertising- winning many accolades along the way- Matthaeus has developed the careers of countless digital artists and filmmakers, through DK’s home office in Seattle and satellites across the nation.

“Unlike most filmmakers, I’ve spent my entire life and career in Seattle,” said Matthaeus. “This city has played a seminal role in who I am, and has defined my outlook on business and creativity. I think to a great degree, this honor validates Seattle as a world-class creative center.”

Leaders of Seattle’s startup community and the city of Seattle have teamed up to launch Startup Seattle, an initiative to support the growth of the Seattle technology startup community and establish Seattle as an internationally recognized home for emerging technology companies. Today, Mayor Mike McGinn hosted a press conference to announce the group’s action plan at the downtown Seattle headquarters of Zillow, one of Seattle’s most successful startups in recent years.

“Startup companies are an important part of Seattle’s innovative local economy,” said McGinn. “That’s why we are working hard to support startup businesses that could turn in to the next Microsoft or Amazon. I thank all of our partners in this work to help support our local economy, which is growing faster than the rest of the region, state and country.”

“Economic recovery doesn’t happen all on its own and this initiative is consistent with Council’s economic recovery resolution calling for actions that make it easier to do business in Seattle,” said Councilmember Richard Conlin.

During the next year, the City plans to hire a startup business sector liaison, re-launch the resource website startupseattle.com, form partnerships with local organizations such as Code.org, Startup Weekend and Student RnD to increase access and connect high school students with local technology opportunities, and develop a marketing campaign to help attract talent to Seattle from across the country. In addition, the City will continue to support “innovation hubs” that make neighborhoods more attractive to early-stage technology companies and initiate a market assessment of real-estate needs for startups that will be used to guide new transit-oriented development in the University District.

The Mayor has joined with the Seattle-King County Workforce Development Council (WDC) to increase the percentage of private sector involvement in hiring youth interns over the summer through the Youth @ Work campaign. Both the City and the WDC have agreed to help employers facilitate the process of increasing the number of these opportunities.

A young person’s first job is an important step on their path to adulthood and independence. Unfortunately, many of today’s young people don’t have the same employment opportunities that previous generations did. Due to the Great Recession, drop in federal support for youth employment programs, and increasing competition for fewer spots, today’s youth unemployment rates are the highest since before World War II. Nationwide, youth unemployment is over 16%. In Washington State, unemployment is 17.3% for ages 20-24 and 34.1% for youth ages 16-19. At the same time, many local industries say their greatest hindrance to growth is lack of a skilled workforce.

This situation is unacceptable. In response, President Obama launched the Summer Jobs Plus program, to work with the private sector to step up and fill the youth employment gap. Locally, we are launching our own program, called Youth @ Work, partnering with the Workforce Development Council of Seattle-King County and the private sector. The goal is to increase the number of summer jobs, internships, and job shadow opportunities available for our young people.

Today my office participated in a conference call with President Obama, other mayors, and local government staff from around the country to discuss this situation and our response. President Obama rightly identified that early experiences shape the trajectory of a person’s life. They can give a sense of opportunity and possibility, and combat the corrosive effect that despair and lack of hope have on individuals and communities. In addition, work experiences help keep kids in school, teach them about the world of work, and help them make better decisions about the careers they want to have and the training they need to get there. Summer youth employment also give our region’s employers talent for the long term: today’s youth are our region’s future workforce.

Business Breakfast: April 23

The Mayor and partner Bank of America are hosting an informational breakfast on April 23, 2013, 7:30 a.m. – 9:30 a.m. in the Bertha Knight Landes Room in City Hall, where businesses can join this sustained effort to give Seattle youth the work experience they need to become the workforce of tomorrow.

Today Mayor Mike McGinn, the Seattle Department of Transportation, and the Seattle Police Department announced an update on Seattle’s pre-paid parking program. In advance of St. Patrick’s Day, every pay station in Seattle now offers the option of overnight parking, providing a tag to mark your car, colloquially called a “liquor sticker.”

The option provides a safe alternative for those who may have had too many drinks to drive, without having to worry about their car being towed.

“When it comes to our road safety efforts, we are taking an ‘all-of-the-above’ approach,” said Mayor McGinn. “That’s why we are making it easier to park your car on our streets overnight to reduce the likelihood of impaired driving and that’s why we are stepping up our enforcement with targeted emphasis patrols.”

Members will propose strategies for an innovative, sustainable and equitable economy

Today Mayor Mike McGinn and Council President Sally J. Clark officially announced the formation of the Economic Development Commission (the Commission) to examine Seattle’s ability to compete in the global economy of the 21st century.

“Since I launched the Seattle Jobs Plan in 2010, we’ve been hearing from the people of Seattle who are building our recovery that they need responsive city government, a supportive regulatory environment, investments in infrastructure, and skilled workers,” said Mayor Mike McGinn. “I’m looking forward to working with the Commission and the insights and ideas that they will bring to continue to build an innovative economy that is sustainable, that enhances our quality of life, and that helps more people share in our prosperity.”

Members of the Commission represent a cross section of business, industry and higher education to advise the Mayor and City Council on the development of plans, policies, regulations, and strategies that have substantial impact on creating and maintaining an innovative economy that is resilient, sustainable, and equitable.

“We live in an amazing place with a startling number of innovators and great talent, and we can’t take any of it for granted,” said Sally J. Clark, Council President and chair of the Council’s Committee on Economic Resiliency and Regional Relations. “This Commission will help us focus the City’s role in supporting innovation and talent for shared prosperity.”

The Commission is comprised of 15 members, and all commissioners serve a one-year term. The Commission is formally created through Council Ordinance 123786.

“Community leaders initiated the idea to create an economic development commission in 2011 during a series of Council-led forums,” said Councilmember Richard Conlin. “The Commission will greatly assist the City in recommending policy priorities and actions that implement the City’s key principles for economic development; quality of life, hospitable and responsive business climate, resilient and sustainable local economy, collaboration and civic leadership, educated workforce, and adaptive strategies.”

The ultimate goal of the Commission is to help the City of Seattle develop and advance a vision for Seattle’s economic development that nurtures a policy and regulatory environment that encourages innovation and supports business formation and growth, retention, and expansion.

“The University of Washington is deeply interested in training our students to meet and to take advantage of the challenges and opportunities of the future. At the same time, we are fully committed to moving the incredible research done at the University into the market and into our communities where it can improve lives,” said Michael Young, president, University of Washington. “For the University to maintain its capacity as an engine for economic stimulation and growth, we need the right environment and partners. The City of Seattle’s Economic Development Commission can support just such an ecosystem, and we are very excited to participate.”

The Commission will examine existing economic development strategies developed by the city and regional partners, seek additional information if necessary, and examine Seattle’s ability to compete in the global economy of the 21st century in terms of innovation, human capital, regulatory process improvement and measuring success.

“As an entrepreneur and investor in early-stage companies, I know that innovation takes place over long cycles,” said Chris DeVore, partner, Founders’ Co-op and TechStars Seattle. “I’m interested in making sure this Commission is thinking about how Seattle can attract the right talent and create the right ecosystem so that the next generation of new, innovative companies will be founded here rather than somewhere else in the world.”

The initial charge of the Commission will be to produce and present a report to the Executive and the Council outlining findings and measures that could be implemented to support business innovation and prepare our workforce to meet the needs of our economy. The Commission will be staffed by the City’s Office of Economic Development.

“As a small business owner of a 17-person construction management and project controls company, our business priority is to hire locally and provide training for this industry,” Tanya Jimale, president and CEO of JTS. “I want to bring my insights and employer experience together with the Commission to bring in more job opportunities and transition people in the community into good, solid jobs with livable wages.”

Seattle Mayor Mike McGinn and sponsors will host a breakfast summit, highlighting new funding and technical opportunities for building owners and managers. The event will be moderated by Maud Daudon from the Seattle Metropolitan Chamber of Commerce. Building owners, elected officials, and potential program participants will all be present to discuss energy efficiency programs and funding for building owners and managers in Seattle.

Commercial and residential buildings are the largest consumers of energy, accounting for approximately $400 billion annually in energy costs in the United States. In most cases, energy consumption is the determining factor for the financial performance of a building. Energy-efficient buildings create greater net income for owners, are more cost efficient for tenants and have a greater marketing advantage. As an example, representatives from Washington Athletic Club will discuss how the $1 million dollar renovation of the facility is saving the club approximately $200,000 annually.

The event is sponsored by Emerald Cities Seattle, Seattle 2030 District, Community Power Works (City of Seattle), MacDonald Miller Facility Solutions, Seattle Steam and the Energy Efficiency Finance Corporation.